How to Pay TDS on Property Purchase in 2026? | Step-by-Step Process to File Form 141

If you purchase immovable property worth ₹50 lakh or more, you must deduct 1% TDS under the Income Tax provisions before making payment to the seller. From FY 2026-27, the new Income-tax Act 2025 framework uses Form 141 (Schedule B) for reporting property TDS in many cases.

 To Watch Live Demo of Step-by-Step Process to File Form 141 : Click Here

Applicability of TDS on Property Purchase

✅ Property value = ₹50 lakh or more
✅ Applicable on Residential / Commercial Property
❌ Not applicable on Agricultural Land
✅ Buyer deducts TDS from seller payment
✅ TDS Rate = 1%

Important Rule

TDS is applicable on:

• Sale Consideration OR
• Stamp Duty Value

Whichever is higher.

Step-by-Step Process to File Form 141 in 2026

Step 1 — Deduct TDS Before Payment

Suppose:

• Property Value = ₹80,00,000
• TDS @1% = ₹80,000

Then:

• Pay seller = ₹79,20,000
• Deposit ₹80,000 with Income Tax Department

Step 2 — Keep Required Documents Ready

You need:

• Buyer PAN
• Seller PAN
• Aadhaar Number
• Mobile Number
• Email ID
• Property Address
• Sale Agreement
• Payment Details
• Date of Payment
• Amount Paid
• Bank Details

Step 3 — Visit Income Tax Portal

Open:

Income Tax Portal

Go to:

e-Pay Tax → New Payment → TDS on Property

Under Income-tax Act 2025 select:

• Section 393(1)
• Table Serial No. 3(i)
• File using Form 141 Schedule B

Step 4 — Fill Buyer & Seller Details

Enter:

• Buyer PAN
• Seller PAN
• Name & Address
• Property Type
• Complete Property Address
• Agreement Date
• Payment Date

⚠️ PAN details must be correct otherwise TDS credit may not appear properly.

Step 5 — Enter Property & TDS Amount

Fill:

• Total Property Value
• Amount Paid
• TDS Amount @1%

Formula

$\text{TDS} = 1\% \times \text{Property Value}$

Example:

$\text{TDS} = 1\% \times 80{,}00{,}000 = 80{,}000$

Step 6 — Make Online Payment

Choose:

• Net Banking
• Debit Card
• Bank Counter (if available)

After payment:
✅ Challan gets generated
✅ Save Acknowledgement Number
✅ Download receipt PDF

Step 7 — Download TDS Certificate (Form 16B / Equivalent)

After 2–5 days:

• Login to TRACES Portal
• Download TDS Certificate
• Share with Seller

Due Date for Filing Form 141

You must deposit TDS:

Within 30 Days

from end of month in which payment is made.

Example

Payment Date = 15 June 2026
Due Date = 30 July 2026

Important Rules Most Buyers Miss

1. TDS on Every Installment

If property is under construction:

• Deduct TDS on EVERY installment
• File separate Form 141/26QB each time

Do NOT wait till registration.

2. GST Not Included

Generally:

• GST excluded for TDS calculation
• Mandatory charges like parking/club charges may be included in consideration.

3. Penalty for Late Filing

Late filing may attract:

• Interest @1% per month
• Late fee ₹200 per day
• Possible notice from Income Tax Department

Common Mistakes to Avoid

❌ Wrong PAN
❌ Filing after due date
❌ Paying full amount to seller without deducting TDS
❌ Forgetting Form 16B download
❌ Single filing for multiple installments

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